The university refers to the payment terms of the Texas Prompt Payment Act as Net 30: Payment of the
net (full) amount will be made within 30 days of receipt of the invoice or receipt of material or service, whichever is
later.

B. Payment Term Exceptions

Occasionally, a vendor will offer an early payment discount to the university and the terms offered will be noted on
the invoice. Accounts Payable will attempt to take advantage of the prompt payment discount terms when processing the
invoice. Otherwise, the invoice will be paid according to the university’s standard Net 30 terms. One example of an
alternate discount term is 2%10 Net 30, which means that a 2 percent cash discount is given to the university if the
invoice is paid within 10 days after receipt; otherwise the net amount is due in 30 days.

C. Prepayment

Payment for goods and services is usually made after the actual receipt of goods or the completion of services.
However, there may be times when prepayment is appropriate. For information on prepayment, see the Handbook of Business
Procedures 9.1.4. Prepayments.